Let's solve the problem step-by-step to ensure that both the Debit and Credit sides of the unadjusted trial balance are equal.
1. List the Debits:
- Cash: \[tex]$15,200
- Supplies: \$[/tex]2,500
- Prepaid Insurance: \[tex]$600
- Equipment: \$[/tex]5,000
- Dividends: \[tex]$500
- Salaries and Wages Expense: \$[/tex]4,000
- Rent Expense: \[tex]$900
2. Sum the Debits:
Add all the debit amounts together:
\[
\$[/tex]15,200 + \[tex]$2,500 + \$[/tex]600 + \[tex]$5,000 + \$[/tex]500 + \[tex]$4,000 + \$[/tex]900 = \[tex]$28,700
\]
3. List the Credits:
- Notes Payable: \$[/tex]5,000
- Accounts Payable: \[tex]$2,500
- Unearned Service Revenue: \$[/tex]1,200
- Common Stock: \[tex]$10,000
- Retained Earnings: \$[/tex]0
- Service Revenue: \[tex]$10,000
4. Sum the Credits:
Add all the credit amounts together:
\[
\$[/tex]5,000 + \[tex]$2,500 + \$[/tex]1,200 + \[tex]$10,000 + \$[/tex]0 + \[tex]$10,000 = \$[/tex]28,700
\]
5. Check if the sums match:
The total debits sum up to \[tex]$28,700 and the total credits sum up to \$[/tex]28,700.
Thus, the unadjusted trial balance is:
[tex]\[
\text{Total Debits} = \$28,700
\][/tex]
[tex]\[
\text{Total Credits} = \$28,700
\][/tex]
Both sides are equal, confirming that the trial balance is correctly balanced.
